Morning Brief: Trump threatens Iran in a tweet

What to watch today

In the week ahead, second quarter earnings season will kick into high gear as three of the four members of FANG will report results. Netflix last week reported earnings that disappointed and shares of the streaming platform fell sharply, and this week all eyes will be on Google parent company Alphabet (reporting Monday), Facebook (reporting Wednesday), and Amazon (reporting Thursday). All three companies will release their results after the market close.

Outside of the FANGs, there will be plenty of earnings action — 174 S&P 500 members are set to report results this week.

Top news

(Iranian Presidency Office via AP)

Trump warns Iran to ‘Never, Ever Threaten’ the US: In a Twitter post late Sunday, U.S. President Donald Trump launched a new broadside against Iran, warning of unspecified “consequences” if counterpart Hassan Rouhani continues threatening America. The threat risks leading to a speedy escalation if neither side backs down. Traders appeared to take the news in stride. [Bloomberg]

Tesla asks suppliers for cash back: Tesla Inc. (TSLA) has asked some suppliers to refund a portion of what the electric-car company has spent previously, an appeal that reflects the auto maker’s urgency to sustain operations during a critical production period. [The Wall Street Journal]

Theranos settles investor suit: Theranos Inc., running on financial fumes, settled a suit filed by investors who had alleged they were defrauded by the blood-testing firm. The pact ends a civil case brought by Robert Colman, a former Silicon Valley investment banker, and other plaintiffs who made indirect investments in Theranos, court records filed Friday show. They alleged that Theranos made false and misleading statements about its technology. [The Wall Street Journal]

Papa John’s adopts rights plan to limit founder’s stake: Papa John’s International Inc. (PZZA) on Sunday adopted a shareholder rights plan, or a “poison pill”, with a 15% trigger to deter existing stockholders from amassing a controlling stake in the company. The company also declared a dividend of one right for each outstanding common share. [Reuters]

China won’t devalue yuan amid trade war: China has no desire to boost its exports through competitive devaluation while the nation’s sound economic fundamentals are providing support to the currency, a spokesman said on Monday as U.S. President Donald Trump took issue with the yuan’s month-long losing streak. [Bloomberg]